Showing posts with label account. Show all posts
Showing posts with label account. Show all posts

Wednesday, December 30, 2009

What is Leverage?





Leverage is simply a way to make you invested capital work harder.

For example, if you have $1,000 to invest and you have a leverage of 100:1 you have 100 x $1,000 or $100,000 you can invest.

So how do you get this leverage?

One simple way to get leverage is to open a FX trading account ( don’t worry if you know nothing about forex we will come that in a minute), a FX broker will grant normally up
to 100:1 as standard, as soon as you open an account.

Of course leverage can work for or against you, so must be able to run profits and cut losses quickly and use strict risk control.